Goodwill and Purchased Intangible Assets

9 Months Ended

Apr. 25, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Purchased Intangible Assets

Goodwill and Purchased Intangible Assets

(a) Goodwill

The following table presents the goodwill allocated to our reportable segments as of April 25, 2020 and during the first nine months of fiscal 2020 (in millions):

	Balance at July 27, 2019		Acquisitions		Foreign currency translation and Other			Balance at April 25, 2020
Americas	$	21,120	$	88	$	(128	)	$	21,080
EMEA	7,977		26		(50		)	7,953
APJC	4,432		16		(28		)	4,420
Total	$	33,529	$	130	$	(206	)	$	33,453

(b) Purchased Intangible Assets

The following table presents details of our intangible assets acquired through acquisitions completed during the first nine months of fiscal 2020 (in millions, except years):

	FINITE LIVES									INDEFINITE LIVES	TOTAL
	TECHNOLOGY			CUSTOMER RELATIONSHIPS			OTHER			IPR&D
	Weighted- Average Useful Life (in Years)	Amount		Weighted- Average Useful Life (in Years)	Amount		Weighted- Average Useful Life (in Years)	Amount		Amount	Amount
Total acquisitions (five in total)	4.8	$	137	4.0	$	8	—	$	—	—	$	145

The following tables present details of our purchased intangible assets (in millions): 

April 25, 2020	Gross		Accumulated Amortization			Net
Purchased intangible assets with finite lives:
Technology	$	3,362	$	(2,261	)	$	1,101
Customer relationships	758		(336		)	422
Other	26		(18		)	8
Total purchased intangible assets with finite lives	4,146		(2,615		)	1,531
In-process research and development, with indefinite lives	213		—			213
Total	$	4,359	$	(2,615	)	$	1,744

 

July 27, 2019	Gross		Accumulated Amortization			Net
Purchased intangible assets with finite lives:
Technology	$	3,270	$	(1,933	)	$	1,337
Customer relationships	840		(331		)	509
Other	41		(22		)	19
Total purchased intangible assets with finite lives	4,151		(2,286		)	1,865
In-process research and development, with indefinite lives	336		—			336
Total	$	4,487	$	(2,286	)	$	2,201

Purchased intangible assets include intangible assets acquired through acquisitions as well as through direct purchases or licenses.

The following table presents the amortization of purchased intangible assets, including impairment charges (in millions):

	Three Months Ended				Nine Months Ended
	April 25, 2020		April 27, 2019		April 25, 2020		April 27, 2019
Amortization of purchased intangible assets:
Cost of sales	$	163	$	157	$	494	$	464
Operating expenses	34		39		108		112
Total	$	197	$	196	$	602	$	576

The estimated future amortization expense of purchased intangible assets with finite lives as of April 25, 2020 is as follows (in millions):

Fiscal Year	Amount
2020 (remaining three months)	$	198
2021	$	623
2022	$	366
2023	$	224
2024	$	113
Thereafter	$	7